Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(16)

Comparative Study on the Perception and Response of Singapore and Indonesia

Though all the ASEAN members have been closely related with each other over history, each country shows different interests in the era of the AEC. 

This is mainly because 10 countries aren't in an identical economic situation. Components of a national economy such as natural resource reserves, labor force abundancy, industrial structure and infrastructure condition are all dissimilar, more or less. This disparity inevitably results in economic gap among the ASEAN members.

Establishment of ASEAN Economic Community(3)

Establishment of the AEC(ASEAN Economic Community) and its implication for South Korea

What will be the ASEAN like in the time of the AEC? It may be too early to forecast the AEC in 10~20 years when the AEC just pulled up its anchor. Even short-term outlook is not an easy thing to challenge as emerging markets with high volatility consist of most parts of the region. 

This could explain why negative voices concerning the future of the AEC started to be echoed. The question is whether the AEC can evolve itself something beyond a regional agreement body. Doubts are cast upon the significant disparity of the social and cultural environment among the member countries. 

In addition, neither a single currency nor a central decision-making tower as those in the EU can’t be found. There exists considerable economic gap in the region as well. 

For example, Singapore is acclaimed to be in the rich Northern Hemisphere while Cambodia only records per capita GDP of about 1,000 USD. In this sense, it is no wonder that a tough itinerary is anticipated on the way to the substantial integration of the AEC.